Canadian Solar loss narrows on fewer costs

BenFox

Canadian Solar Inc.'s
CSIQ, -0.57%
first-quarter loss narrowed as the company recorded fewer costs, though revenue and solar-module shipments fell.

The maker of solar panels and equipment has seen its revenue decline over the past year as tepid demand and an oversupply of low-priced solar panels from China have sent wafer and module prices tumbling.

Canadian Solar reported a loss of $4.4 million, or 10 cents a share, compared with a loss of $21.3 million, or 49 cents a share, a year earlier. Revenue sank 19% to $263.6 million.

Gross margin widened to 9.7% from 7.7%, as input costs fell 21%. Also, operating expenses were 80% lower, after the company reversed a non-cash provision related to an arbitration.

Solar-module shipments fell 0.9% to 340 megawatts, compared with the company's prediction this month for shipments of 335 megawatts to 345 megawatts.

For the second quarter, Canadian Solar forecast shipments in the range of 380 megawatts to 420 megawatts. It also backed full-year shipments guidance.

Shares closed Friday at $8.61 and were up 11% premarket. The stock has more than doubled so far this year.

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